JD Helps SMEs Make Bill Discounting More Efficient

by Ling Cao

JD has helped SMEs streamline the process of bill discounting, which is a trade-related activity in which a company’s unpaid invoices that are due to be paid at a future date are sold to a financier (a bank or another financial institution). For many SMEs, bill discounting is an important way to ease cash flow issues, and the traditional process has often been complicated and time-intensive.

Tong Zhang works for a Jiangsu-based manufacturer producing non-standard devices that faced financial difficulty paying suppliers and employees in 2020, due to the pandemic and a long R&D cycle for producing products.

With JD Technology’s help, Zhang solved this urgent problem by dealing with the process via JD’s bill discounting platform, ultimately processing an amount of RMB 300,000 yuan.

The experience was smooth and worry-free, Zhang said. “Previously we didn’t know which bank could help us with the business, and it was difficult to compare which banks had lower interest rates. All of these problems can be worked out on JD’s platform.”

In order to use the platform, clients need to provide company certificates and sign an agreement—with approval usually granted in only half an hour. Then, they can upload invoices to one of the banks, and the billing will be completed in as fast as ten seconds, with the process being fully automatic. In contrast, a traditional offline process normally will need five to seven personnel for one bank, and one case may take over 10 days.

JD Technology has cooperated with many banks on the service since it was released in June 2018. Today, the platform has served over 130,000 clients, most of which are SMEs. The minimum billing value it has processed is RMB 2,000 yuan, enabling smaller businesses to benefit too.

Hui Wang, head of the bill discounting department at JD Technology shared, “By using big data and AI in the financial industries, we can analyze the market in real-time, help clients easily solve the billing queries, and even help institutions build an anti-fraud model to prevent counterfeiting bills.”

 

(ling.cao@jd.com)

JD.com Announces Fourth Quarter and Full Year 2020 Results

On Mar. 11th, JD.com released its fourth quarter and full year 2020 earnings results. Below is an infographic with the key highlights. The full release can be found here.

JD.com released its fourth quarter and full year 2020 earnings results.

 

Disclaimer: In the case of any discrepancies, the original earnings press release shall prevail.

JD Cloud Drives Digitalization Of Pharmaceutical Company

by Martin Li

JD Cloud has helped Yipinhong Pharmaceutical Co, Ltd, one of the top 20 innovative medication developers and producers in China, develop Cloud solutions to meet the company’s demand for digital transformation.

The Guangzhou-based company focuses on medication for children and chronical diseases and spends around 10% of its revenue generated from self-developed medication on research and development each year.

Yipinhong's Headquarters in Guangzhou.

Yipinhong’s headquarters in Guangzhou.

JD Cloud’s solutions enable a fast and flexible deployment of the company’s different data systems, meeting its demand for digitalized IT infrastructure. The solutions can handle large volumes of information, and be deployed flexibly and securely.

“While pharmaceutical companies are rapidly moving towards digitalization, Cloud computing suppliers like JD Cloud work as a strong external supporter,” said a spokesperson of the information center of the company.

A solution architect at JD Cloud said that many traditional enterprises used to have a siloed IT infrastructure, in which different applications were not connected with each other, leading to a ‘data island’ and a waste of resources.

The company looks to continued partnership with JD Cloud in fields like enterprise informatization, smart logistics and digital medicine.

 

(bjlihao3@jd.com)

 

 

 

JD to Open Third E-Space Store in Xi’an

by Rachel Liu

JD’s third E-Space store will open in Shenglong Square, a business area in Weiyang District, north of Xi’an, which was announced on Mar. 9. The store will be about 42,000 square meters and carry 200,000 kinds of products online and offline.

This is JD’s third E-Space store after the Chongqing store opened in 2019, and the Hefei store that will open this year.

The JD E-Space store focuses on offering unique and immersive experiences, allowing customers to interact fully with state-of-the-art, innovative, and smart products. The stores feature popular and best-selling products from electronics, home appliances, and digital accessories to health, fitness and beauty products, office supplies and more. The Chongqing store has become a “must-visit” place for local customers and topped the most favored fashion and entertainment location among local residents.

Xi’an is the largest city in Northwest China with over 10 million residents. The city’s GDP surpassed RMB 1 trillion yuan in 2020 and has massive consumption potential. The JD E-Space store will bring a new shopping experience to local customers.

“Since launching in Xi’an in 2014, the Shenglong Square has been bringing new stores and brands to local residents,” said Yuan Cheng, its general manager. “We hope that we can work with JD E-Space to further upgrade the lifestyle and shopping experience for the neighborhood.”

“JD E-Space is not just for shopping, but also provides an immersive experience for new products and technology,” said Xing Jing, vice president of JD 5Star. “We believe the experiential model is the trend of the next decade, and will attract the new generation.”

 

(liuchang61@jd.com)

JD Data: Prosperous Consumer Trends in Lower-tier Markets

by Ella Kidron

JD Big Data Research Institute and Chinese data services enterprise Tianyancha partnered to release a report on lower-tier markets trends on Mar. 9, 2021. The report comes just as rural revitalization is front and center in China’s annual Two Sessions meeting.

Here are a few highlights:

Looking at stats from just after the Chinese New Year holiday, only 47% of people who took trains from tier 1-2 cities to 3-6 tier cities bought return tickets after the festival period. The figure reached 82% for people who bought air tickets. Among the reasons for this trend are that people staggered their visits or prolonged time spent at home before returning. Another possibility, however, is that they are planning to stay and work in their hometowns.

This is indicated by a piece of data: One week before the Spring Festival, among local orders placed by consumers under age 45 in lower-tier markets, shopping frequency was 1.5 times higher after the Spring Festival than the two weeks before it. The main categories for high frequency purchases included work and production related items, home furnishing and decoration, auto and more.

Another indication of the fact that conditions in people’s hometowns in lower-tier markets is improving is the reduction in the number of migrant children enrolled in tier 1 and 2 cities, despite the fact that enrollment of primary school-age students across the country has continued to rise since 2016. This is further verified by consumption data from JD regarding children’s books.

A comparison of children’s books and auxiliary teaching materials consumption across the country, in particular the annual order data from February 2016-2021, indicates that the growth rate of remote orders (where the sender and recipient city are different) in lower-tier cities have seen a downward trend, only increasing sharply in 2020 due to the COVID-19 outbreak.

On the other hand, the growth rate of local orders in this category in mid-to-lower tier markets has increased maintained a high growth rate, and the demand for these products in lower-tier markets has been at its highest in the last five years. This is an indication that in recent years more migrant workers have moved their children’s future education plans from the big cities to their hometowns, possibly also reflecting an overall improvement in the employment opportunities available closer to home.

(ella@jd.com)

Decathlon Launches Flagship Store on JD

by Hui Zhang

Decathlon, the world’s largest sporting goods retailer, opened a flagship store on JD on Mar. 6, offering more than 80 kinds of sports-related products covering a wide range of activities from hiking and climbing, swimming and running, to skiing and surfing, road cycling, equestrian and more.

Due to the impact of the pandemic, Decathlon decided to expand its sales channels by working with JD.com to reach more Chinese consumers. JD’s strong customer base and big data analysis will assist Decathlon precisely target its potential consumers. At the same time, JD’s nationwide logistics network will greatly improve Decathlon’s distribution efficiency.

“Based on Decathlon’s diversity of sports products and its complete supply chain advantages, both sides will enhance cooperation in bringing a unique sports shopping experience for JD’s consumers,” said a representative from JD’s sports business unit.

Decathlon, a French retailer, has over 1,647 stores in 59 countries and regions. It officially entered China in 2003, opening its first offline store in Asia.

 

(zhanghui36@jd.com)

JD: Supporting Rural Revitalization will be a Long-Term Project

by Rachel Liu

JD Fresh will continue to support farmers and the agricultural industry in the long term, helping over 1 million farmers achieve an income increase of over 50% in three years.

JD Fresh has been supporting China’s agricultural industry belts and rural areas to develop iconic local agricultural products and leverage its platform to sell products to customers all over the country. As of October 2020, JD has sold 1.3 million kinds of agricultural products for a total of 300 million items, and increased the income of 1 million farmers.

JD Fresh now has over 1,000 “Local Specialties Pavilion” stores selling over 600,000 agricultural products. JD’s cold chain for fresh food covers nearly 300 cities. It has jointly developed popular agricultural products such as “running chicken”, “swimming duck,” “flying pigeon,” “running mountain pig” and more with rural governments and industry belts. Wuyi of Hebei province, where JD’s “running chicken” project was first developed, was awarded for its contribution to poverty alleviation in February of this year.

The “running mountain pigs” that grow in Yuquan Mountain, Heilongjiang province achieved the fastest growth of sales in the pork category on JD. JD built a playground specially to allow the pigs to have enough exercise, and in this way, the pork is of less fat and widely welcomed by high-end customers. Besides pork, JD also helped local farmers develop other pork-based products, such as dumpling fillings and sausage, which received 98% positive reviews on JD.

Going forward, as a company that focuses on supply chain and technology, JD wants to upgrade its previous model to support rural areas, and will build a mechanism for local farmers to achieve continuous income growth.

 

(liuchang61@jd.com)

Posted in ESG

JD’s Asia No.1 Boosts Economic Development of Rural Area

by Yuchuan Wang

Located in the southeast of Shenyang, Maizitun (literally means Village of Wheat) is a fast-growing logistics hub. Thousands of fully-loaded trucks drive in and out of this village every day. It’s hard to imagine that 10 years ago, Maizitun was a small village relying heavily on farming.

After JD.com launched one of its “Asia No.1” logistics parks in 2010, a project aiming to build the largest scale and most advanced network of e-commerce logistics centers in Asia, more and more logistics companies have established their businesses in Maizitun. The area has become the logistics hub for the southern Shenyang area.

Rongjun Chen, a local villager working as a picker at this warehouse has observed the transformation since he joined the company in 2015. “JD has changed many people’s lives here, allowing farmers to transform into blue, and even white collar workers.”

Born in 1993, Chen oversees more than 60 picking AGVs (automated ground vehicles) at JD for a warehousing area of 5,000 square meters, stocking nearly 10,000 different kinds of beauty products. The AGVs can recognize QR codes on the floor for route planning, which enables pickers to pick about 250 orders per hour each – three times the efficiency of a traditional picking approach.

“I used to walk miles a day to pick goods from the shelves,” said Chen. “With AGVs, I just need to be with the work station. And I’m no longer the champion in among my WeChat group friends feeding for stepping.”

In addition to operating the robots, Chen is learning how to maintain and fix them. “Technology is developing day by day. I need to learn in advance so that I can keep up with the pace of change.”

Like Chen, hundreds of Maizitun villagers are working in this park, from forklift operators to truck drivers and from sorters to couriers. Several real estate companies are building commercial and residential compounds in the village, and more and more local people’s lives have been changed by enterprises launched here one after another.

JD is operating 28 Asia No.1 logistics parks in China. The project provided numerous jobs, linking rural areas with fast delivery of global products and boosting the economy in vast rural areas.

“When you can find a stable job and stay with your family instead of going far away, you feel happy,” said Chen. Among JD’s frontline employees, over 200,000 are from rural areas, and 80,000 staff are able to work in their hometowns.

 

(yuchuan.wang@jd.com)

Posted in ESG